RWJ Dividend Type Payments

Oppenheimer S&P Sm-Cap 600 Revenue ETF dividend

Although RWJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Oppenheimer S&P Sm-Cap 600 Revenue ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:35 PM ET):

Oppenheimer S&P Sm-Cap 600 Revenue ETF (RWJ)
Bid Ask Last Change Volume P/E Market Cap
61.46 61.53 61.58 -1.23 23K - 0.0B

RWJ Dividend-Like Income Using Covered Calls

With RWJ at 61.58, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.85 0.5
5% 3.08 0.8
10% 6.16 1.7

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On RWJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 63.00 0.20 9 2.2 1.47 (2.4%)
Jan 18 64.00 0.45 37 1.2 2.47 (4.0%)
5% Yield On RWJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 63.00 0.20 9 2.2 1.47 (2.4%)
Jan 18 64.00 0.45 37 1.2 2.47 (4.0%)
10% Yield On RWJ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 63.00 0.20 9 2.2 1.47 (2.4%)
Jan 18 63.00 0.90 37 2.4 1.47 (2.4%)

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Want more examples? RVSB Dividend | RWK Dividend